Benchmark indices ended the session in the red buy recovered about 600 points with Sensex falling 689.78 points or 1.23% at 55557.50, and the Nifty shedding 165.10 points or 0.98% at 16628.80. About 1642 shares have advanced, 1537 shares declined, and 101 shares are unchanged.
Among the sectors, the auto and banking index shed 2 percent each while buying was seen in metals and power stocks.
Rupee ends at 75.71 per US Dollar against previous close of 75.34 per US Dollar.
Oil prices surged on Wednesday as supply disruption fears mounted following hefty sanctions on Russian banks amid the intensifying Ukraine conflict, while traders scrambled to seek alternative oil sources in an already tight market. Brent crude futures rose by as much as $8 and touched as high as $113.02 a barrel, the highest since June 2014, before easing to $111.75 at 0804 GMT.
Petrol and diesel price hikes are likely to resume after state elections get over next week to bridge the Rs 9 a litre gap created by international oil prices soaring past USD 100 a barrel. International crude oil prices shot above USD 110 a barrel for the first time since mid-2014 on fears that oil and gas supplies from energy giant Russia could be disrupted, either by the conflict in Ukraine or retaliatory western sanctions.